From Our Investment Committee: 2021 Economic & Market Commentary

We are pleased to bring you our bi-annual Economic and Market Commentary, authored by our Investment Committee, which provides a high-level summary of the current economic environment.

Executive Summary

  • The COVID-19 Pandemic brought record levels of market volatility and severe selloffs in what is now dubbed the “Corona Crash”. COVID-19 related economic shutdowns caused GDP to plummet in the second quarter of the year, which was accompanied by record levels of unemployment.
  • Interest rates dropped precipitously as the Federal Reserve stepped into ease liquidity concerns and offer additional avenues to aid in credit markets. Inflation rates also stalled as the demand shock from global economic shutdowns caused earnings and growth in sectors like airlines, energy, hospitality, and travel to come to a halt.
  • Despite large selloffs and uncertainty regarding the COVID-19 virus as well as the 2020 United States Presidential Election, equity markets reached all-time highs, aided in part by unprecedented fiscal and monetary stimulus globally. Fixed income markets enjoyed a positive year in the face of stymied inflation, sinking interest rates and the general risk-off attitude of investors. Both domestic and international real estate markets were shaken by the move to widespread remote work as well as harder hit sectors like restaurants, malls, and hotels.
  • Going forward there are several risks that we continue to monitor including potential policy changes coming out of Congress, additional stimulus, and the continued distribution of the COVID-19 vaccine.

Read the full summary here.


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